A Review of Pseudo Panel Data Approach in Estimating Short-run and Long-run Public Transport Demand Elasticities

Abstract

The distinctions between short-run and long-run public transport demand elasticities have been highlighted in the literature, but the identification of long-run travel demand has been constrained by existing research methodology and the unavailability of longitudinal travel survey data. The pseudo panel data approach using repeated cross-sectional data has been suggested as an alternative to conducting a longitudinal travel demand analysis when genuine panel data are not available. This paper comprehensively reviews the background and the current practices of pseudo panel data research, and introduces the challenges in applied research that need further investigation, particularly for public transport. A case study using the Sydney Household Travel Survey data is presented to demonstrate pseudo panel data construction and to identify the short-run and long-run public transport demand elasticities using a pseudo panel data approach. The research findings suggest that the public transport demand elasticity of price in Sydney is ?0.22 in the short run and ?0.29 in the long run.